What is high ticket affiliate marketing? Affiliate marketing is a business model whereby third parties earn commissions for product referrals. High ticket affiliates promote higher than average cost products. Most affiliates will choose products costing around $100 or less. High ticket products tend to cost much more, such as $1000 or above. With high ticket affiliate marketing a referrer can earn considerably more per sale than with standard affiliate products. Here’s an example of a high ticket affiliate product:
The Amphibious Sub-Surface Watercraft can be found on Hammacher.com and the site pays 8% commissions on a sale. That’s a commission of £24,000!
What Is High Ticket Affiliate Marketing – Physical Vs Digital Products
High ticket products can be both physical and digital products. With a digital product there’s no cost involved in postage or delivery. This means the savings can be passed on to affiliates who promote them.
As such, digital products typically pay a larger percentage of the sale value to affiliates. Most physical products, such as those you would find on Amazon will pay between 1% and 10% commission. With digital products you’re more likely to find products paying 30% – 40% commission.
What Is High Ticket Affiliate Marketing – Ranges & Business Systems
Because of this some of the highest paying products online are digital products. Digital products are also in high demand. Whereas most people aren’t in the market for a $300,000 submarine, there’s a lot more people looking for products to help them earn online, for example.
A digital business training program, for example, is a high demand high ticket product which can offer multiple levels of “buy-in”. This means more people can access it, whatever their purchasing power. By selling a product range, you can attract more people who can purchase your products, whatever their income. Whereas a high valued physical product has a smaller pool of potential buyers (only millionaires/billionaires can afford the submarine). Learn more about this with the free video series here.
Subscription Items
A good digital product to choose is something which is vital for a business. For example, business tools and systems allow people to earn online. Because they are necessary for online businesses, customers continue to subscribe to them over the longer term. Certain digital products also pay out recurring commissions if they are subscription based.
So if you sell these kinds of products you can earn a recurring income from each sale you generate. So you only need a few sales in order to become profitable. With physical products you can only earn one time – for the initial sale and no more. After that you need to find more customers. But with recurring income affiliate products, each sale is an income, rather than a one off!
Summary
With high ticket affiliate marketing you need far fewer sales to make a profit. Take the submarine from above as an example again and you’ll earn $24,000 if you manage to sell one. Now compare that to a sale of a low valued product from Amazon.
At 7% commission on this item (phone mount) you’ll need to sell over 24,000 of them to make the same amount as with the submarine! While many new affiliates flock to Amazon (because it’s a well known and trusted site), it’s not such a good site for affiliates.
The average commission rate for Amazon affiliates peaked in mid-2012 at 9.25% and has fallen to nearly a third of that since. Amazon slashed its rates for affiliates in April 2020. See also Amazon affiliate marketing commission rate.